San Juan Island School District Levy

Prepared by the Committee for Support of San Juan School District Levies and Bonds'
CAPITAL PROJECTS LEVY

What is a Capital Projects Levy?
School Districts are permitted to seek voter approval for the capital funds necessary for major and minor improvements to facilities, for the purchase of furniture and equipment, and to pay outstanding indebtedness for capital projects. Capital funds cannot be used to support general operating expenses or instructional programs.

Why do we need a Capital Levy?
While the general fund pays for the daily cleaning of our facilities and minor repairs, capital funds are required for major maintenance and improvements, and for the replacement of equipment. Currently we have no funds in our capital fund to address these issues, and we simply must not use operating funds for these purposes at the expense of our instructional programs, class sizes, and learning opportunities for our students. This capital levy is essential to helping us preserve our excellent educational programs, the safety of our students, and the integrity of our facilities.

Doesn’t the State of Washington fund public education?
The State only provides funding for basic education. Most districts pass supplemental operating levies to provide smaller class sizes, instructional program enrichment, services for special needs students, transportation, and co-curricular activities such as sports, drama and music. SJISD’s operating levy pays for 19% of the district’s operating budget and funds programs such as smaller class sizes, advanced placement classes, music, drama, sports, and other options for students.

Districts are also permitted to pass special levies to obtain funding for capital renovations, equipment replacement, etc. The state does not provide funding for most capital expenses, but will provide a small percentage of matching funds for new construction.

What will the Capital Levy pay for?
The Capital Levy will provide funds for…
  1. Needed repairs and renovations of school buildings and to upgrade equipment and systems.
  2. Maintenance of the District’s technology infrastructure, and to provide essential technology upgrades for classrooms, students and faculty.
  3. Payment of loans for past emergency capital projects accomplished in the summer of 2002.

What will this levy cost me?
The total amount of the capital levy is set at $1,500,000. This amount will be collected from property taxes over a three year period. The millage rate is determined each year by the total assessed value of the property within the district. Given that the total assessed value of property continually rises with new construction as well as reassessments, the millage rate will decrease over the three years of the levy.

Proposed is a capital projects levy that will raise $500,000 per year for three years:

Collection Years	Annual Levy Amount	Approximate Levy Rate/$1,000 Assessed Value	Approximate Annual Cost for a Home Assessed at $400,000
2006	500,000	.23	$92.00
2007	500,000	.18	$72.00
2008	500,000	.17	$68.00

Don’t we already have a voter approved levy?
Yes. Voters renewed a four-year Maintenance and Operating Levy in 2002. This levy will be up for renewal again in the spring of 2006, and by state law, cannot exceed 24% of the total amount of state education funding. These funds are used for staff salaries, programs and services, supplies, and other operating costs. The Capital Levy is requesting funds that go above and beyond what the Maintenance and Operating Levy can pay for.

Will passing a levy for capital expenses also help to reduce class sizes?
Budgetary challenges currently exist in part because capital expenses are currently being paid for out of operating funds. By passing this Capital Levy, essential infrastructure repair and replacement costs will be born by the capital fund. Therefore, a greater percentage of operating funds can be used to help maintain and reduce class sizes.

Didn’t the Gates Grant pay for all the high school’s technology needs and Verne Howard/Valmark’s business sponsorship provide all the middle school’s technology needs?
Since the only technology levy was passed in 1994, the district has paid for technology costs in a number of ways. Primarily, those costs have come out of the operating budget. Foundation grants, private donations and business sponsorships have also provided support to our schools’ technology needs over the years.

The Gates Grant has been a great catalyst for needed change in our high school. Half of the Gates Grant funds received was used for staff development and teacher training, while the other half replaced some of the high school’s 6 – 8 year old computers.

Verne Howard’s generous Valmark business sponsorship provided much needed replacement computers for the Middle School’s computer lab.

A primary purpose of this levy is to replace old technology in a manner that is going to achieve the educational mission of our District. Our interest is to have all students prepared for post-high school education and work with the technology tools necessary for success. To do so teachers must have up-to-date technology to integrate into every classroom to support writing, research and presentations, science, math and other subjects. The federal No Child Left Behind Act requires that technology be integrated into every classroom.

In addition, to manage the District’s finances, student records, and communications we are dependent upon having stable networks and reliable technology.

This solution will include adequate technical support, updated software, and staff development to enhance learning in each classroom. School districts need not be on the cutting edge of technology and our four year technology plan is comprehensive and frugal. Our plan provides for appropriate student access, reliable tools for students, teachers and staff, and a reliable network that facilitates communication within the District and with our community.

If the district has cut a technology teaching position, what is the district’s commitment to technology instruction?
The District remains fully committed to integrating technology as appropriate in all classrooms. While it was necessary to reduce a teaching position at the high school, we continue to be committed to providing a robust program in applied technology through the assignment of other faculty, and the use of community resources. The Capital Levy will provide the essential technology necessary for applied courses, and create greater flexibility in the general fund necessary to continue to provide these program opportunities.

Why doesn’t the district sell the Carter Street property to pay for these capital projects expenses?
The Carter Street property, purchased with a portion of the bond approved by the voters in 1997, is a tremendous asset and the District’s only option for growth in the future. Enrollment trends rise and fall. It would be short sighted to sell off the District’s option for the future after only 8 years of ownership.

Why doesn’t the district sell the district office building?
District Offices were housed in a substandard building with no storage space, no room to meet, and crowded office conditions prior to the purchase of the current building in 2002. Filing was done on the floor, security was poor, and office practices were out-dated and substandard. The District is a $7 million operation that requires adequate work space for conducting business, filing, storage, meeting, and being responsive to the needs of the public, students, faculty and staff. Should District enrollment fall to a point at which there are several open classrooms in a school building, the District will consider relocating the District Offices.

Will the capital funds be used to pay for the special education placement?
No. Capital funds cannot be used for general operating expenses such as special education placements.

Will these funds be used to pay for construction or maintenance of the new athletic fields proposed to be built on the school’s Carter Street property?
No. The District is making the land available for community athletic fields as promised with the 1997 capital bond. All development cost are being born by private donations. Field maintenance and operations will be managed by Island Rec., pending the identification of a community funding source. The District will not provide funding for the development or operation of these community fields.

Did the school district receive state matching funds for the middle school/high school modernization projects? If so, how was it used?
The District received a total of $651,064 in construction matching funds from the state during 1999 and 2000. In 2000 and 2001, $354,970 was used to finish the high school/middle school modernization program. In 2002, $296,094 was used to complete other emergency capital projects. A final state match payment of $42,227 was received and spent for capital projects in 2003-04.

Does the capital fund historically have a zero balance between capital levies?
Districts are authorized to pass capital levies to obtain funding for the purchase of land, building schools, major replacement of equipment and systems, and for the modernization of facilities. Capital levies are proposed for specific projects and once the projects are completed the capital fund balance is usually zero. An exception to this is when a district sells property. The proceeds of the sale are placed in the capital fund, and such proceeds must be used for qualified capital expenditures.

This district has a capital levy in 1994 for technology, which was fully expended. Then a capital bond was passed in 1997 for the modernization of the high school/middle school, and the purchase of land for a future school site. These funds were fully expended by the end of 2004.

When will the election for the Capital Levy take place?
The Levy Election will take place in the primary, which will be an all vote-by-mail election. Ballots will be mailed on August 31st, and must be postmarked no later than September 20th to be counted. Voter registration and other election information can be found at the SJC Elections Department in the Courthouse, 378-3357, or on their website:
http://www.co.san-juan.wa.us/elections/default.asp

What can I do to support our schools?
Show your commitment to education! Vote YES by September 20th, and help spread the word that supporting this Capital Levy will maintain and enhance the investments we’ve already made in our schools.